Larkin: Casinos are a sucker's bet

Friday

Sep 28, 2007 at 12:01 AMSep 28, 2007 at 4:29 PM

"The thing about the rat race is that even if you win, you're still a rat." - Lily Tomlin

Cognitive-behavioral psychology defines addictive behaviors as repeated problematic involvement with substances or activities, driven by irrational thoughts about short-term benefits. Abstinence is achieved by thinking rationally about the long-term costs of the addictive behaviors.

Tom Larkin

"The thing about the rat race is that even if you win, you're still a rat." - Lily Tomlin

Cognitive-behavioral psychology defines addictive behaviors as repeated problematic involvement with substances or activities, driven by irrational thoughts about short-term benefits. Abstinence is achieved by thinking rationally about the long-term costs of the addictive behaviors.

The Massachusetts Council on Compulsive Gambling estimates about 6 percent of the adult population, over 250,000 residents, have had gambling problems in the past year. All self-defeating habits fall on a continuum from mild, moderate to severe. Gambling is a severe problem for about 3 percent, a persistent problem for about 10 percent and an occasional problem for many more gamblers.

The apparent short-term benefits have dominated the debate about the opening of the Commonwealth's first gambling casinos. I have seen no empirical evidence demonstrating that theoretical economic gains will not be siphoned off from other businesses. For a more rational view, here are some facts about the long term costs of casino gambling.

Gambling revenues are regressive and redistributed unequally. About 65 percent of gambling dollars come from about 10 percent of the public. Those who can least afford it, gamble the most. A study by the National Institute on Mental Health concluded that 60 percent of addicted gamblers had a yearly income of under $25,000. A significant share of gambling revenue comes from poor, low income, addicted and emotionally needy people. This money is then used to serve the well-educated, high-income, non-gambling public. I call it the Sheriff of Nottingham approach to government.

Revenues from casinos go to the owners and are often displaced from other tax-paying businesses. In Atlantic City, except for an increase in pawn shops, small businesses decreased after casinos opened. There were 311 taverns and restaurants in Atlantic City before casinos opened and only 66 remained open 16 years later.

Over time, there was no change in per capita income as increases in some industries were offset by reductions in others. A Congressional Hearing in 1994 estimated the taxpayer cost of each new pathological gambler to be from $10,000 to $52,000 a year. In an Iowa study, with each new casino problem gamblers increased by 200 percent within 50 miles of the casino. Bankruptcy rates also increased. Similar increases were noted in Louisiana and Maryland. The American Insurance Institute estimates that 40 percent of white collar crime has its roots in gambling and accounts for about 1.3 billion in insurance related fraud.

Gambling problems cause a direct increase in divorce, embezzlement, bankruptcy and child neglect and abuse. The South Dakota Department of Social Services saw an increase from 300 to 500 in reports of children in need of protective services and case filings of abuse and neglect rose by 15 percent the year after opening casinos.

In Deadwood, South Dakota, after two years of casino gambling, child abuse cases increased by 42 percent and domestic violence and assaults by 80 percent.

According to the National Council on Problem Gambling, 20 percent of those treated for compulsive gambling have attempted suicide. There are strong correlations between gambling and depression, tobacco use, stress, work inefficiency and many other social and psychological problems.

For example, about 30 percent of people with alcohol and other drug problems also have gambling problems. Teenagers, seniors and racial minorities have higher rates of gambling problems than the general population. Aside from avoiding the political discomfort of cutting waste and raising taxes, why inflict gambling casinos on us?

This apparent quick fix also avoids the important political discussion of closing tax loopholes on the wealthy and a fairer progressive tax system.

Those who advocate for lower taxes that benefit the majority will not dwell on the unfair cost of these proposals on the minority. George Bernard Shaw was right when he said, "A government which robs Peter to pay Paul can always depend on the support of Paul."

The short-term political benefit is keeping taxes low. The long-term cost is social and economic instability. Those in control of casinos, and the political agenda, set the odds. Taking those odds is a sucker's bet. Casinos are a very bad deal.

Tom Larkin is a SMART Recovery Facilitator and a licensed psychologist. SMART Recovery is a free abstinence based program open to the public. For a list of meeting locations go to www. SMARTRecovery.org.

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